Welcome to edition 23rd of Markets, Distilled—your edge on capital flows across the exponential age.
We’ve streamlined: each section now highlights one high-growth sector with 2–3 liquid plays and actionable insights.
1. Copper & Gold:
A. Geopolitics Heats Up - Commodities Rise:
Trump’s 50% steel and aluminum tariffs have re-ignited trade war fears—and markets are moving early.
Volatility is rising as firms rush to stockpile. Copper is jumping on broader tariff speculation, gold on policy risk.
With AI demand and geopolitical tailwinds, commodities could be entering a structural breakout.
B. Materials Are Taking The Stage:
AI software steals the spotlight, but hardware is the real choke point—and copper runs the system.
LLMs are the brains; data centers are the muscle, wired with copper for power, boards, and cooling.
Data center copper demand is set to 6x by 2050—from 0.5M to 3M tonnes.
Copper/SPX is firming into 2025—early signs of a rotation. As AI scales, copper demand compounds. Plays: FCX and BHP for direct exposure, COPX for the basket.
C. Gold’s Market Decoupling:
Gold has broken from its old inverse-yield pattern. Since Russia’s 2022 asset freeze, central banks have ramped up buying to hedge policy risk.
Retail joined as global tensions grew—gold ETFs now hold ~$294B.
Momentum is rising across proxies: AEM, NEM (miners), GDX, GDXJ (broad), UGL (leveraged), and even BTC, gaining ground as digital gold.
Source: Goldman Sachs
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